The COVID-19 pandemic continues to wreak havoc on the economy and small businesses are being left in its wake. Today the Minister of Finance, Bill Morneau announced an $86 billion dollar stimulus package just five days after he announced that the Business Development Bank of Canada would increase the amount of financing available to support small businesses.
The government also established the Business Credit Availability Program which will cooperate with private lenders to coordinate financing and credit insurance solutions for businesses through the Business Development Bank of Canada and Export Development Canada.
Below is a list highlighting the different tools offered by the Business Development Bank of Canada and Export development Canada compiled by the Greater Vancouver Board of Trade.
Business Development Bank of Canada
Working Capital Loan: Provides extra funds to bridge cash flow gaps and support everyday operation. It allows flexible repayment terms to protect your cash flow and limit personal risk.
Small Business Loan: Up to $100,000 can be obtained online if the business has been generating revenue for at least 24 months, has good credit history and other requirements. Capital payments can be postponed for the first six months and loans can be paid back over five years.
Indigenous Entrepreneur Loan: Up to $350,000 with flexible repayment terms to protect cash flow and a limit to personal risk
Purchase Order Financing: Provides businesses with maximum purchase order financing, flexible terms tailored to purchaser order terms by increasing cash flow to fulfill domestic or international orders.
Export Development Canada
Export Development Canada is working with Federal Partners and other Canadian Financial Institutions to help minimize the effect of COVID-19 on businesses and working to provide exporters with access to needed capital.